NEW YORK — Bankrupt Spiegel Inc.’s net loss continued to mount in the third quarter on shrinking top-line results.
This story first appeared in the November 13, 2003 issue of WWD. Subscribe Today.
For the 13 weeks ended Sept. 27, the Downers Grove, Ill.-based parent of Eddie Bauer reported a loss of $103.9 million, or 79 cents a diluted share. That compares with a net loss of $40.5 million, or 31 cents, in last year’s comparable period. However, in a bright spot, Spiegel did manage to narrow its loss before reorganization costs and minority interest expense to $29.5 million from $40.5 million a year ago.
Net revenues for the three months declined 29.3 percent to $386.3 million from $549.7 million a year ago. Of that, net sales fell by more than a quarter, or 26.1 percent, to $348.9 million from $472.3 million last year, and other revenue fell 31.7 percent to $37.4 million from $54.8 million. Spiegel had no revenue from finance operations this year — the segment contributed $22.6 million to the top line a year ago — because it has since divested itself of that business.
Spiegel reported its quarterly results in a Form 8-K filing released Wednesday by the Securities and Exchange Commission.
Looking at the balance sheet, although Spiegel’s total assets shrank 55.5 percent year-over-year to $1.01 billion from $2.27 billion, the firm’s total liabilities also regressed, falling to $1.87 billion, a 14.9- percent reduction from $2.2 billion last year. Spiegel also ended the period with 38.1 percent more cash and cash equivalents on hand, or $37.2 million versus $26.9 million a year ago.
For the first nine months of the fiscal year, Spiegel recorded a wider net loss of $381.4 million, or $2.89, compared with $139.9 million, or $1.06, last year. Net revenues dropped 27 percent to $1.29 billion from $1.77 billion.